"Kitco" is a familiar name to many people who visit our world-famous, award-winning website www.kitco.com. With its compelling combination of an online precious metals store, live spot prices, expert market commentaries, up-to-the-minute news and usable market information, our website attracts nearly a million visits every day.
Kitco Metals Inc. is also one of the world's premier retailers of precious metals and a leading supplier of refining services, labware for mineral analysis and precision-crafted devices for high-technology manufacturing processes.

Gold Ends Weaker After Scoring 5-Week High Early On

(Kitco News) - Comex gold prices ended the U.S. day session moderately lower Tuesday, but up from the daily low. Gold prices hit a five-week high in overseas trading, but as action moved to the U.S. some technically related selling pressure set in. A firmer U.S. dollar index early on also weighed on the gold and silver markets. However, when the dollar index slipped below unchanged on the day gold prices bobbed up from their daily lows. February gold was last down $10.20 at $1,241.70 an ounce. Spot gold was last quoted down $12.40 at $1242.75. March Comex silver last traded down $0.449 at $19.85 an ounce.

There was no major U.S. economic data due out Tuesday, which made for a quieter trading day for many markets. The International Monetary Fund released its world economic outlook Tuesday, which showed a rise of 0.1%, to 3.7% in 2014. The IMF report continued a trend of generally upbeat economic data coming out of most major world economies.

The feature of a quieter, U.S. holiday-shortened trading week is the annual economic and financial forum held in Davos, Switzerland. The forum lasts all week. Many of the world’s economic and financial movers and shakers—or those that think they are—including celebrities, show up at this confab to discuss and promote their ideologies.

In overnight news, China’s central bank injected liquidity into its financial system to check a rise in short-term interest rates, which was attributed to cash needs for consumers ahead of the Chinese Lunar New Year holiday that begins on January 31.

The German ZEW economic conditions index was released Tuesday and it unexpectedly fell to 61.7 in January from 62.0 in December. The consensus forecast was for a reading of 64.0. The Euro currency was pressured on the German data.

The London P.M. gold fix is $1,238.00 versus the P.M. fixing of $1,255.75.

Technically, February gold futures prices closed nearer the session low Tuesday after hitting a five-week high early on. Prices also scored a bearish “outside day” down on the daily bar chart today. The gold market bears have the overall technical advantage. However, if the bulls can manage to post decent gains by the end of this week, they would gain good upside momentum to suggest the three-week-old uptrend on the daily bar chart can be sustained. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the December high of $1,267.50. Bears’ next near-term downside breakout price objective is closing prices below solid technical support at $1,212.60. First resistance is seen at $1,247.70 and then at $1,250.00. First support is seen at last week’s low of $1,233.50 and then at $1,225.00. Wyckoff’s Market Rating: 2.5

March silver futures prices closed nearer the session low Tuesday and scored a bearish “outside day” down on the daily bar chart. Silver bears have the overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $21.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the January low of $19.31. First resistance is seen at $20.00 and then at Tuesday’s high of $20.435. Next support is seen at Tuesday’s low of $19.655 and then at $19.50. Wyckoff’s Market Rating: 2.0.

March N.Y. copper closed up 90 points at 335.35 cents Tuesday. Prices closed nearer the session high. Copper bulls and bears are still on an overall level near-term technical playing field. Copper bulls’ next upside breakout objective is pushing and closing prices above solid technical resistance at the January high of 342.45 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the January low of 328.85 cents. First resistance is seen at last week’s high of 337.35 cents and then at 340.00 cents. First support is seen at 333.00 cents and then at Tuesday’s low of 331.50 cents. Wyckoff’s Market Rating: 5.0.

Follow me on Twitter to immediately get the very latest market developments. If you are not on board, then you are not getting key analysis and perspective as fast or as often as you could! Follow me on Twitter to get my very timely intra-day and after-hours briefs on precious metals price action. The precious markets will remain very active. If you want market analysis fast, and in after-hours trading, then follow my up-to-the-second precious metals market perspective on Twitter. It’s free, too. My account is @jimwyckoff.

Post Your Comment

Post Your Reply

Forbes writers have the ability to call out member comments they find particularly interesting. Called-out comments are highlighted across the Forbes network. You'll be notified if your comment is called out.